The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of three bonded fabrics from El Salvador

N314102 January 14, 2021 CLA-2-60:OT:RR:NC:N3:352 CATEGORY: Classification TARIFF NO.: 6001.22.0000 Francesco Pilenga PETTENATI CENTRO AMERICA S.A. de C.V. Km. 42, carretera a Santa Ana municipio de Coatepeque, El Salvador RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of three bonded fabrics from El Salvador Dear Mr. Pilenga: In your letter dated August 11, 2020, on behalf of Pettenati Centroamerica, you requested a ruling for tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) for three bonded fabrics to be used in the manufacture of various apparel products. Three fabric styles, identified as 89997, 89998 and 89999, were submitted and sent for laboratory analysis. FACTS: The U.S. Customs and Border Protection Laboratory (CBP Laboratory) has determined that the bonded fabric style 89997 is constructed of three layers composed of a knit face, a middle layer of polyurethane plastic and knit backing fabric. The dyed face fabric is composed wholly of polyester weft knit sinker loop pile construction and weighs 357.9 g/m2. The middle layer is composed of a polyurethane type of plastic and weighs 59.3 g/m2. The dyed knit backing fabric is composed wholly of polyester and weighs 164.9 g/m2. The knit backing fabric is not of pile construction. The total weight of the bonded fabric is 582.1 g/m2. Based on the relative weights, quantity, and end-use of the face and backing fabrics, we have determined that it is the face fabric, which imparts this product with the essential character. The CBP Laboratory has determined that the bonded fabric style 89998 is composed of a weft knit face fabric bonded to a weft knit backing fabric. The dyed face fabric is composed wholly of polyester weft knit sinker loop pile construction and weighs 400.2 g/m2. The dyed backing fabric is composed wholly of polyester and is constructed of weft knit sinker loop pile; it weighs 387.6 g/m2. The total weight of the bonded fabric is 787.8 g/m2. Based on the relative weights, quantity, and end-use of the face and backing fabrics, we have determined that it is the face fabric, which imparts this product with the essential character. The CBP Laboratory has determined that the bonded fabric style 89999 is composed of a weft knit face fabric bonded to a weft knit backing fabric. The dyed face fabric is composed wholly of polyester weft knit sinker loop pile construction and weighs 383.8 g/m2. The dyed knit backing fabric is composed wholly of polyester and weighs 145 g/m2. The knit backing fabric is not of pile construction. The total weight of the bonded fabric is 528.8 g/m2. Based on the relative weights, quantity, and end-use of the face and backing fabrics, we have determined that it is the face fabric, which imparts this product with the essential character. You have described and provided affidavits for the manufacturing operations as follows: The 100 percent polyester yarns used to produce the three fabric styles (89997, 89998 and 89999) were produced in the United States, Guatemala and El Salvador, wholly of originating fibers and/or other materials under the DR-CAFTA Agreement. These yarns for the three fabric styles (89997, 89998 and 89999) are knitted into fabric in El Salvador. The three fabric styles (89997, 89998 and 89999) were dyed, brushed, napped, tumbled and finished in El Salvador. Fabric style 89997 incorporates a plastic membrane, wholly of polyurethane (PU), which is imported in rolls from Italy. The three fabric styles (89997, 89998 and 89999) will be shipped from El Salvador and other countries of the DR-CAFTA Agreement to the United States. CLASSIFICATION: The applicable subheading for all three fabric styles, identified as 89997, 89998 and 89999, will be 6001.22.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted: Looped pile fabrics: Of man-made fibers. The rate of duty will be 17.2% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. DR-CAFTA ELIGIBILITY – LAW AND ANALYSIS: General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. Since fabric style 89997 contains a non-originating material (a polyurethane membrane produced in Italy), it would have to undergo an applicable change in tariff classification in order to meet the requirements of General Note 29(b)(ii)(A). For goods classified in heading 6001, General Note 29(n), Chapter 60, Rule 1 requires: A change to headings 6001 through 6006 from any other chapter, except from headings 5106 through 5113, chapter 52, headings 5310 through 5311 or chapters 54 through 55. Per the DR-CAFTA product specific rule above, the non-originating material (a polyurethane membrane produced in Italy) is classified in Chapter 39; it is required to undergo an applicable change in tariff classification in order to meet the requirements of General Note 29(b)(ii)(A). Since the polyurethane membrane is not one of the excluded headings listed in the rule for heading 6001, it meets the requirements of General Note 29(b)(ii)(A) and qualifies for preferential treatment under the DR-CAFTA. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements specified in General Note 29. Based on the facts provided, fabric styles 89998 and 89999 contain originating materials, which meet the requirements of General Note 29(b)(iii). The knit fabric was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements specified in General Note 29. HOLDING: The applicable subheading for all three fabric styles, identified as 89997, 89998 and 89999, will be 6001.22.0000, HTSUS, which provides for Pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted: Looped pile fabrics: Of man-made fibers. The rate of duty will be 17.2% ad valorem. This merchandise does qualify for preferential treatment under the DR-CAFTA because the requirements have been met under General Note 29(b)(ii)(A) and General Note 29(b)(iii). Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Nicole Rosso via email at nicole.rosso@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division